Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices remained steady in Asian trade on Thursday, staying close to their recent record highs, as investors shifted their attention to Federal Reserve Chair Jerome Powell’s upcoming address and significant U.S. economic data releases.
Spot gold rose by 0.2% to $2,661.78 an ounce, while December gold futures steadied at $2,685.0 an ounce as of 00:18 ET (04:18 GMT). Spot prices briefly hit a record high of $2,670.52 on Wednesday, underscoring the yellow metal’s resilience in the face of economic uncertainty.
Market Focus: Powell’s Address and Data-Driven Easing
Powell’s speech is eagerly awaited after multiple Fed officials expressed their support for last week’s 50 basis point (bps) interest rate cut. However, mixed signals emerged on how the central bank plans to implement further reductions. The recent 50 bps cut has marked the beginning of an easing cycle, with analysts at Citi predicting rates could be lowered by a total of 125 bps by year-end.
The Fed has indicated that it will take a data-driven approach to further rate cuts, making upcoming economic releases even more crucial. Investors are closely watching the revised reading of second-quarter gross domestic product (GDP) data, scheduled for release later on Thursday, along with weekly jobless claims figures. The PCE price index, the Fed’s preferred inflation measure, is due on Friday and is likely to have a significant impact on the central bank’s next steps.
Other Precious Metals Gain Ground
In other precious metals markets, platinum futures rose by 0.6% to $997.85 an ounce, while silver futures increased by 0.5% to $32.188 an ounce, suggesting a broadly positive trend across the sector.
Copper Prices Steady Amid Cooling Optimism Over China’s Stimulus Measures
Among industrial metals, copper prices stabilized after reaching two-month highs earlier in the week, driven by initial optimism over additional stimulus measures announced by China, the world’s largest copper importer.
Benchmark copper futures on the London Metal Exchange fell slightly by 0.1% to $9,800.50 a ton, while one-month copper futures remained steady at $4.48553 a pound. These contracts had surged sharply following China’s announcement of a 50 bps reduction in bank reserve requirements and a cut to mortgage rates.
Despite these stimulus measures, analysts argue that more extensive fiscal support is required from Beijing to ensure sustained growth in the Chinese economy, which could further influence copper prices.
Market Outlook
Overall, metal markets appear to be in a cautious holding pattern, with traders awaiting further guidance from Powell’s address and key economic data releases. The U.S. dollar’s recent rebound has added pressure on metals, but persistent speculation around the Fed’s easing cycle may continue to support gold and other precious metals in the short term. Industrial metals like copper, however, may remain volatile as market sentiment towards China’s economic growth prospects evolves.
